Late Payment Fee

Posted in General Discussion.Skip To Latest

ZENITH Courier Services

1383
Original Poster

Three months ago I did a job for a company I wont name (yet...). Terms were 90 days which I personally think is outrageous, but I swallowed my pride and accepted the job. 102 days later and I still haven't been paid.

I feel I'm within my rights to levy a surcharge. Does anyone else do this? If so, how much?

AJM sameday Couriers

3440

Done it a few times, don't feel guilty they should get there priorities in order, or if there is a problem paying have the decency to let you know, also used debt collector quite a few times, but 12 days over is not that bad

ZENITH Courier Services

1383
Original Poster

What about the fact that my T&Cs didn't mention a fee at the time of booking? (Not that they've read them)

AJM sameday Couriers

3440

Its only manners that when somebody does a job for you they pay you, I would phone them, if no joy get the guns blazing, are they close to you?

I would ignot T & C and do what you feel is right

Speed Couriers Nationwide Ltd

10314

I wouldn't work for anyone on 90day payment terms cos that's what's known in the trade as takin the p***

MK BIKES

2821

The correct phrase should be at the bottom of your invoice...

In the event of late payment we reserve the right under the Late Payment of Commercial Debts Acts 1998 incorporating European Directive 2000/35/EC to levy late payment charges,interest & the associated costs of debt recovery.

However you are still within your rights to write/email (prob better with read reciept) to them requesting that if payment isn't received within 7 days you will levy a £40 late payment charge and look to recover the debt with what ever options available.

90 days is outrageous

Gas Motorcycle Couriers

3617

Personally never had a problem on clients paying... Even when there terms are 30/60/90.. Ive took on the best like red bull and others in which I have had apologies and payment Immediately.. and my terms are 14.. so dont take any crap

I would call them first and politely ask them that there account is now overdue and payment would be gratefully received and give them a couple of days to pay, after this then email them a reminder invoice and again ask them again politely that looking at your records there account is now overdue and add what is on the bottom of my Invoice and payment page of my web.. if no success then become firm and remind them of additional charges, but remember add the correct charges including admin and any other charge MK you beat me...

MK BIKES

2821

Just this bit not the rest........

In the event of late payment we reserve the right under the Late Payment of Commercial Debts Acts 1998 incorporating European Directive 2000/35/EC to levy late payment charges,interest & the associated costs of debt recovery.

Gas Motorcycle Couriers

3617

Thats what I was on about

Speed Couriers Nationwide Ltd

10314

Or

Don't work for anyone offering 90 day payment terms

Much easier

Gas Motorcycle Couriers

3617

Speed Couriers (Stansted) said:


Or

Don't work for anyone offering 90 day payment terms

Much easier

Now seeing as you mentioned it.. This is true, but one of my clients pays this on there terms, but did tell em seeing as It my terms as they have had the service we have come to an understanding and, Ive managed to negotiate it to 30... Bingo.. But I dont do more than 14 unless its a regular, but in this day and age I prefer card payment its a lot easier

S.E.X.I.

698

Cam..

Did that 90 days which you are counting finish in January cos you invoiced 90 days ago. Or is that 90 days from the end of the month in which you invoiced said company...

Scott Reid

1029

If you as the supplier and your customer have not discussed and agreed to certain terms then the laws regarding late payments (this applies only to business to business transactions) are applicable.

Those laws state that 30 days from date that the service was provided would be the latest acceptable date in law by which you should be paid.

If you have discussed terms with your client and agreed a longer period then this is fair enough.

However, once the payment terms which you have agreed with your client have been broken you are entitled by law to issue a Late Payment Notice for which you are legally entitled to charge for (£40 for debts under £1000 I believe). Also you are entitled to levy a daily interest charge of 8% over the base rate (currently 0.5%).

Whether you do this or not is completely up to you! You may decide that future business prospects with your client may be worth more than the £40 plus interest and decide not to pursue it, but the best thing is that you are not legally obliged to pursue it nor does non pursuance affect your rights under this law.

For any invoice which was paid late you have up to 6 years from the date which the invoice was due to be paid to pursue this.

I had to chase up 4 invoices from November last year just this week. 1 to a company who have used us constantly over the last two years and who have not only pretty much always paid on time, there are times when they have paid us early at our request. The other 3 to a company who have used us since we began.

The relationships we have with these companies is so good that I would not ever dream of issuing a late payment notice to them.

On the other hand there is another company who requires our services every once in a while yet constantly pays up to a week late on net monthly terms. Payment always needs to be chased and the personnel in accounts are rather off hand when you are just politely trying to inform them that they are late AGAIN! For companies such as this I keep a written record of how late each invoice was paid, the amount of £40 late payment charges they now owe (one per invoice) plus the interest due for each invoice.

I'll add it up once we are close to the 6 years and see if it's worth pursuing :-)

Oddly enough one minimum charge job was paid so late that the total late payment charge plus interest for this job would (if I desired to charge it) be almost 15 times the original price of the job it's self.

In short, you have the legal right to make a late payment charge plus interest, but only you can decide whether that is more financially viable for you or not.

Scott.

Barnsley Shipping

5

90 days is too long in this modern economy we used to do it in the old days but no more! I used to get back loads of timber from tilbury docks when I had the lorrys then the only way to get paid was to drive down 3 and half months later and pick up the cheque it was the only way to get paid! Never again!

MK BIKES

2821

Peter Riley said:


Scott.

MK BIKES

2821

Why did you sign it Scott?

Speed Couriers Nationwide Ltd

10314

He's Bipolar

Scott Reid

1029

If you read it properly you will find multiple references to "we"! Self explanatory really.

MK BIKES

2821

Peter Riley said:


If you read it properly you will find multiple references to "we"! Self explanatory really.

I was only asking seeing as your profile DOESNT MENTION WE, not requiring a sarky comment

Scott Reid

1029

:-), it wasn't intended to be sarky.

Scott.

DMS NATIONWIDE COURIERS

5507

I'm having a problem with a member on here for a job i covered on 31-05-2013. I stated when quoting the job, 30 days payment terms. The member didn't allocate the job to me through mtvan tho even though it was posted on here. The invoice payment was due on 1-7-2013. I have sent emails and messages to the member to get in touch asap to resolve the payment issue. But without any contact i'm thinking i should apply a late payment fee. I did cover a another job for them about a week later and they paid me within 10 days. What would you do

Phax

2250

Ring em, be polite but firm. Then send the boys round.

MK BIKES

2821

It would be polite (taking the moral high ground here) to email them (then it would be easier to prove than a phone call) stating that payment now XX days over due and that you expect payment with the next 7 day otherwise a late payment fee will be levied and steps taken to recover the amount.

MK BIKES

2821

Although the later invoice payment is a bit bizarre, maybe they have lost it, call them first in fact.

DMS NATIONWIDE COURIERS

5507

I always attech a copy of the invoice when i email them.

Speed Couriers Nationwide Ltd

10314

The fact they've paid one you've done after this suggests to me it's nothing more than an oversight. If you've messaged them on here then they may well have not logged on so won't have read it. I'd email them form the email on their website, that way you know they've had it.

DJ Specialist Couriers

454

People become a little ignorant when it comes to replying to text and emails. Its easy just to ignore these, so I would just ring them and explain the oversight. If still no payment is made a visit usually does the trick.

MK BIKES

2821

DJ Specialist Couriers said:


a visit usually does the trick.

For a small debt this would be totally impractical especially if quite a few miles are involved

DJ Specialist Couriers

454

MK Bikes said:


DJ Specialist Couriers said:


a visit usually does the trick.

For a small debt this would be totally impractical especially if quite a few miles are involved

Obviously you would not make a special journey for this purpose, but being a Courier there is the possibility that you may be in the vicinity at some point.

AJM sameday Couriers

3440

I always find a phone call works then if no joy and they are not forthcoming then you should take action, I and probably most people on here will have experienced this at sometime, if the person has forgot about it, then posting it on here won't do you many favours when it comes to any work in the future this person posts.

Enjoy this discussion? Check out these related topics: 30 DAYS PAYMENT? Really, Payment, New payment terms from one of my customers, Fuel cards as payment for tolls in Europe, Late Payment Advise Please, Non Payment of Job, Payment terms, POD's and Payment, Payment, Anyone heard of or are using Zapper mobile payment option.

Reply To Topic

We invite anyone involved in the courier industry to share their knowledge to other on the mtvan courier forum. If you're a member then sign in to post, if you're an owner driver or courier company then please sign up for free.

For more information on what you can discuss on our courier forum please see our courier forum guidelines.